Video game hardware sales saw a significant uptick last year in comparison to 2013, but software sales at retail continue to chart a decline, the NPD Group's latest report states.

Hardware sales saw a slight drop to $1.31 billion in December compared to the $1.37 billion earned during the same period last year. Annual hardware sales for 2014 peaked at $5.07 billion, however, representing a 20 percent increase over the $4.24 billion reported in 2013.